Market Likely To Open In Green

Indian equities indices not sustain two days rally on worries that the government's decision to refer the key bills on land acquisition and the goods and services tax to select committee of Parliament will further delay their implementation, while weakness in global bond markets also hit sentiment. A major selloff dragged the Sensex below the psychological 27000-mark to touch a low of 26837.39. It finally settled down 629.82 points, or 2.29%, at 26877.48. The NSE Nifty plunged 198.30 points, or 2.19%, to 8,142.70. The BSE Mid-Cap index and the BSE Small-Cap index were off 1.72% each. The fall in both these indices was lower than the Sensex's decline in percentage terms. In addition, rupee depreciated by 35 paise to Rs 64.20 against the dollar in intra-day trade.

Consumer price inflation (CPI)-based inflation for April 2015 eased to 4.87% from 5.25% recorded in the previous month. Consumer Food Price Index stood at 5.11% in April 2015, down 1.03 percentage points from 6.14% in March 2015.

On the other hand, industrial production (IIP), witnessed a moderation in growth rate to 2.1% in March 2015 compared with 4.86% growth recorded in the previous month. During fiscal 2015, industrial production went up by 2.8%.

U.S. stocks on Tuesday declined for a second straight session following a sharp selloff in European equities and government bonds. Investors are beginning to worry about a global sell-off in government bonds that has been driving long-term borrowing costs higher. The benchmark U.S. bond yield touched its highest level since November. The Dow fell 36.94 points, or 0.2%, to end at 18068.23. The S&P 500 declined 6.21 points, or 0.3%, to 2099.12 and the Nasdaq Composite declined 17.38 points, or 0.35%, to 4976.19.

Bond prices advanced. The yield on the 10-year US Treasury dipped to 2.25% from 2.28% on Monday, while the 30-year dropped to 3.02% from 3.05%. Bond prices and yields move inversely. WTI crude rose USD 1.50 to close at USD 60.75 in New York. Brent crude climbed USD 1.95 to close at USD 66.86 in London.

Lingering concerns over Greece's debt situation pegged back European stock markets on Monday. Greece worries intensified after the country’s finance minister said it may run out of cash in two weeks. The Stoxx Europe 600 index fell 1.3% to 396.09, breaking a two-day rally. Britain’s FTSE 100 fell 1.4% and Germany’s DAX sank 1.7%. France’s CAC 40 dropped 1.1%.

Asian stocks open in mixed early Wednesday ahead of a slew of economic data from China. Japan’s Topix index lost 0.4%. South Korea’s Kospi index added 0.68%. Australia’s S&P/ASX 200 Index increased 0.4%. New Zealand’s NZX 50 Index gained 0.32%. China's Shanghai Composite down by 45% and the Hang Seng index fell 0.12 % in Hong Kong.

SGX Nifty is trading up by 40 points. Indian market is likely to open in green. Aarti Industries, Adani Enterprises, Emami, ITD Cementation, Mt Educare and Smartlink Network would be reporting fourth quarter earnings today.